[REX LOGO]
News Announcement For Immediate Release
For further information contact:
Douglas Bruggeman Stewart A. Lewack, Joseph N. Jaffoni
Chief Financial Officer Jaffoni & Collins Incorporated
937/276-3931 212/835-8500 or rsc@jcir.com
REX STORES REPORTS THIRD QUARTER NET INCOME
OF $3.4 MILLION, OR $0.27 PER DILUTED SHARE
- Third Quarter Comp Store Sales Rise 1% -
Dayton, Ohio (December 2, 2004) -- REX Stores Corporation (NYSE:RSC), a
specialty retailer of consumer electronic products and appliances, today
announced financial results and comparable store sales for the three- and
nine-month periods ended October 31, 2004.
Net income in the three months ended October 31, 2004 was $3.4 million, or $0.27
per diluted share, compared to net income of $4.1 million, or $0.32 per diluted
share, in the three months ended October 31, 2003. Per share results are based
on 12,610,000 and 12,866,000 diluted weighted average shares outstanding for the
three-month periods ending October 31, 2004 and 2003, respectively.
Net sales in the three months ended October 31, 2004 fell 1% to $93.6 million
from $94.5 million in the three months ended October 31, 2003. Comparable store
sales during the period rose 1% compared to the year-ago period. The Company
reports sales performance quarterly and considers a store to be comparable after
it has been open six full fiscal quarters. Comparable store sales figures do not
include sales of extended service contracts.
During the three-month period ended October 31, 2004, REX purchased
approximately 177,000 shares of its common stock in open market transactions.
The Company has approximately 523,000 authorized shares remaining available to
purchase under its previously announced stock buy-back authorization.
-more-
REX Stores Reports Third Quarter Results, 12/2/04 page 2
Net income for the nine-month period ended October 31, 2004 rose 4% to $10.8
million, or $0.84 per diluted share, compared to net income of $10.4 million, or
$0.82 per diluted share, in the nine-month period ended October 31, 2003. Per
share results are based on 12,778,000 and 12,608,000 diluted weighted average
shares outstanding for the nine-month periods ending October 31, 2004 and 2003,
respectively. Net sales in the 2004 nine-month period were $267.6 million
compared to $277.1 million in the nine months ended October 31, 2003, while
comparable store sales fell 2%.
The Company will host a conference call and webcast today at 11:00 a.m. EST,
which are open to the general public. The conference call dial-in number is
212/676-5240; please call ten minutes in advance to ensure that you are
connected prior to the presentation. Interested parties may also access the call
live via the Investor Relations page of the Company's website, www.rextv.com, or
at www.fulldisclosure.com; please allow 15 minutes to register, download and
install any necessary software.
Following its completion, a telephonic replay of the call can be accessed
through 1:00 p.m. EST on December 2, 2004 by dialing 800/633-8284 or
402/977-9140 (international callers). The access code for the audio replay is
21215534. A replay of the webcast will be available for 30 days at www.rextv.com
or www.fulldisclosure.com.
REX Stores Corporation is a leading specialty retailer of consumer electronic
products and appliances. As of October 31, 2004, the Company operated 238 stores
in 37 states under the trade name "REX."
This news announcement contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements can be
identified by use of forward-looking terminology such as "may," "expect,"
"believe," "estimate," "anticipate" or "continue" or the negative thereof or
other variations thereon or comparable terminology. Readers are cautioned that
there are risks and uncertainties that could cause actual events or results to
differ materially from those referred to in such forward-looking statements.
These risks and uncertainties include among other things: the highly competitive
nature of the consumer electronics retailing industry, changes in the national
or regional economies, weather, the effects of terrorism or acts of war on
consumer spending patterns, the availability of certain products, technological
changes, new regulatory restrictions or tax law changes relating to the
Company's synthetic fuel investments, the fluctuating amount of quarterly
payments received by the Company with respect to sales of its partnership
interest in a synthetic fuel investment, and the uncertain amount of synthetic
fuel production and tax credits received from time to time from the Company's
synthetic fuel investments.
-tables follow-
REX Stores Reports Third Quarter Results, 12/2/04 page 3
REX STORES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
October 31, October 31,
------------------- --------------------
2004 2003 2004 2003
-------- -------- -------- --------
NET SALES $93,606 $94,493 $267,564 $277,058
COSTS AND EXPENSES:
Cost of merchandise sold 68,419 66,310 192,226 193,818
Selling, general and administrative expenses 25,789 25,478 74,024 76,075
------- ------- -------- --------
Total costs and expenses 94,208 91,788 266,250 269,893
------- ------- -------- --------
Income (loss) from continuing operations before
interest, other items, income taxes and discontinued
operations (602) 2,705 1,314 7,165
INVESTMENT INCOME 7 14 152 54
INTEREST EXPENSE (716) (1,247) (3,040) (3,687)
GAIN ON SALE OF REAL ESTATE 121 393 121 779
INCOME FROM SYNFUEL INVESTMENTS 5,219 3,733 13,798 9,916
------- ------- -------- --------
Income from continuing operations before
provision for income taxes and discontinued
operations 4,029 5,598 12,345 14,227
PROVISION FOR INCOME TAXES 530 1,421 1,165 3,609
------- ------- -------- --------
Income from continuing operations 3,499 4,177 11,180 10,618
Loss from discontinued operations, net of tax (118) (96) (430) (232)
------- ------- -------- --------
Net Income $ 3,381 $ 4,081 $ 10,750 $ 10,386
======= ======= ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 10,897 10,819 11,092 10,820
======= ======= ======== ========
Basic income per share from continuing operations $ 0.32 $ 0.39 $ 1.01 $ 0.98
Basic loss per share from discontinued operations (0.01) (0.01) (0.04) (0.02)
------- ------- -------- --------
BASIC NET INCOME PER SHARE $ 0.31 $ 0.38 $ 0.97 $ 0.96
======= ======= ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED 12,610 12,866 12,778 12,608
======= ======= ======== ========
Diluted income per share from continuing operations $ 0.28 $ 0.33 $ 0.87 $ 0.84
Diluted loss per share from discontinued operations (0.01) (0.01) (0.03) (0.02)
------- ------- -------- --------
DILUTED NET INCOME PER SHARE $ 0.27 $ 0.32 $ 0.84 $ 0.82
======= ======= ======== ========
(more)
REX Stores Reports Third Quarter Results, 12/2/04 page 4
REX STORES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, except per share amounts)
October 31 January 31 October 31
2004 2004 2003
----------- ---------- -----------
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 3,959 $ 29,026 $ 1,503
Accounts receivable, net 2,204 2,560 1,551
Synthetic fuel receivable 1,848 3,098 655
Merchandise inventory 152,215 116,755 155,354
Prepaid expenses and other 2,897 1,481 2,704
Future income tax benefits 8,703 8,703 8,860
--------- --------- ---------
Total current assets 171,826 161,623 170,627
PROPERTY AND EQUIPMENT, NET 130,487 131,409 131,560
ASSETS HELD FOR SALE 2,569 - -
OTHER ASSETS 612 3,477 2,596
FUTURE INCOME TAX BENEFITS 16,082 14,645 7,560
SYNTHETIC FUEL ESCROW - - 7,886
RESTRICTED INVESTMENTS 2,265 2,257 2,253
--------- --------- ---------
Total assets $ 323,841 $ 313,411 $ 322,482
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $ 15,169 $ - $ 18,901
Current portion of long-term debt 2,939 5,258 7,708
Current portion of deferred income and
deferred gain on sale and leaseback 10,378 10,544 10,985
Accounts payable, trade 49,259 32,745 34,690
Accrued income taxes - 806 1,371
Accrued payroll 5,101 6,602 4,885
Other current liabilities 7,454 7,214 8,449
--------- --------- ---------
Total current liabilities 90,300 63,169 86,989
--------- --------- ---------
LONG-TERM LIABILITIES:
Long-term mortgage debt 31,633 53,548 57,752
Deferred income 11,522 12,762 12,632
--------- --------- ---------
Total long-term liabilities 43,155 66,310 70,384
--------- --------- ---------
SHAREHOLDERS' EQUITY:
Common stock 287 283 281
Paid-in capital 130,705 126,124 123,677
Retained earnings 195,830 185,080 168,026
Treasury stock (136,436) (127,555) (126,875)
--------- --------- ---------
Total shareholders' equity 190,386 183,932 165,109
--------- --------- ---------
Total liabilities and
shareholders' equity $ 323,841 $ 313,411 $ 322,482
========= ========= =========